Reviewing Markets Post Ethereum Merge

Last week, the long-anticipated upgrade to transition Ethereum’s consensus algorithm to proof-of-stake (PoS) took place. Fortunately, with no major issues during the upgrade process, the community can now focus attention on the future of PoS ETH. The conclusion of the upgrade also brings to close several patterns in market structure leading up to The Merge, which will be discussed here. 

Leading up to The Merge, some popular themes in trades were sharply increasing borrowing costs for spot ETH, backwardation in futures markets, and long ETH volatility. Here, we’ll take a look at how each of these themes has progressed in the days immediately following.